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Medicaid

Began as a supplement to Medicare in 1965, and provides health insurance for individuals living in poverty.

It is the largest health insurance program by enrollment in the US and the largest means tested.

Coverage includes impoverished children, pregnant people, those with disabilities, and older adults.

Medicaid is the primary payer for long-term care in the US covering more than six in 10 people receiving institutional long-term services and supports and making nursing home care the second largest category of spending in Medicaid, after hospitals.

It disproportionately ensures people from racial and ethnic minority groups and has an important role in finance and care for older adults and people with physical, intellectual, and mental health disabilities.

Medicaid is the leading payer for pregnancies, covering more than 40% of them in the United States and more than 60% of births in some states.

It is the primary strategy of a national social safety net.

About 12,2 million people are on Medicaid and Medicare:, making up 19% of Medicare beneficiaries and 14% of Medicaid beneficiaries.

Dually enrolled patience account for roughly 1/3 of spending in each program.

It’s expansion is associated with improved healthcare access and outcomes, including mortality, for its enrollees, and provides gains in social outcomes such as lower rates of high school dropout, home eviction, and crime. 

Medicaid has improved access to care and reduced health insurance disparities by race, ethnicity, and social class.

It is jointly financed by federal and state government but is administered separately by state within federal guidelines.

It  serves disproportionately racial and ethnic minority groups who account for more than half of enrollees.

In 2022 Medicaid insured approximately 83 million individuals with 56.4% from racial and ethnic minority groups.

In 2020 the estimated Medicaid spending was $671.2 billion or 16.3% of total US health spending.

Each state has a distinct Medicaid program, which must meet mandatory benefits for mandatory populations, at mandatory income levels.

The ACA (affordable care act) in 2010 expanded Medicaid coverage for all eligible adults younger than 65 years earning up to 133% of the FPL (federal poverty level).

Medicaid has had essential role in driving the uninsured rate to historic low of 8% in 2022 and less than 4% for children. Medicaid covers approximately one and five people in the US, more than 40% of births, and more than 60% of nursing home residents.

Medi-Cal is the largest state Medicaid program, covering more than 14 million individuals, 68% of them are from racial and ethnic minority groups, and has an annual budget of more than $130 billion.

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